Pepsi 2015 Annual Report Download - page 106
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Table of Contents
89
A summary of our 2014 Productivity Plan charges is as follows:
2015 2014 2013
Severance
and Other
Employee
Costs
Asset
Impairments
Other
Costs Total
Severance
and Other
Employee
Costs
Asset
Impairments
Other
Costs Total
Severance
and Other
Employee
Costs
Other
Costs Total
FLNA (a) $ 18 $ (1) $ 9 $ 26 $ 25 $ 10 $ 11 $ 46 $ 11 $ — $ 11
QFNA — —3 3 12 — 2 14 3 — 3
NAB 10 4 17 31 60 56 56 172 9 — 9
Latin America 2 10 16 28 15 3 10 28 6 — 6
ESSA 26 11 25 62 24 4 14 42 10 — 10
AMENA 2 — 8 10 14 — 8 22 1 — 1
Corporate (a) 1 —8 9 (2) — 35 33 12 1 13
$ 59 $ 24 $ 86 $ 169 $ 148 $ 73 $ 136 $ 357 $ 52 $ 1 $ 53
(a) Income amounts represent adjustments of previously recorded amounts.
A summary of our 2014 Productivity Plan activity is as follows:
Severance
and Other
Employee Costs
Asset
Impairments Other Costs Total
2013 restructuring charges $ 52 $ —$ 1$ 53
Non-cash charges and translation (22) ——
(22)
Liability as of December 28, 2013 30 — 1 31
2014 restructuring charges 148 73 136 357
Cash payments (56) — (109)(165)
Non-cash charges and translation (33) (73)(4)(110)
Liability as of December 27, 2014 89 — 24 113
2015 restructuring charges 59 24 86 169
Cash payments (76) — (87)(163)
Non-cash charges and translation (11) (24)(3)(38)
Liability as of December 26, 2015 $ 61 $ — $ 20 $ 81
2012 Multi-Year Productivity Plan
The 2012 Productivity Plan included actions in every aspect of our business that we believe would strengthen
our complementary food, snack and beverage businesses by: leveraging new technologies and processes
across PepsiCo’s operations, go-to-market and information systems; heightening the focus on best practice
sharing across the globe; consolidating manufacturing, warehouse and sales facilities; and implementing
simplified organization structures, with wider spans of control and fewer layers of management. The 2012
Productivity Plan has enhanced PepsiCo’s cost-competitiveness and provided a source of funding for future
brand-building and innovation initiatives.
In 2015, 2014 and 2013, we incurred restructuring charges of $61 million ($50 million after-tax or $0.03 per
share), $61 million ($54 million after-tax or $0.04 per share) and $110 million ($90 million after-tax or $0.06
per share), respectively, in conjunction with our 2012 Productivity Plan. All of these charges were recorded
in selling, general and administrative expenses and primarily relate to severance and other employee-related
costs, asset impairments (all non-cash), and contract termination costs. We do not expect any further charges
associated with our 2012 Productivity Plan. Substantially all of the restructuring accrual at December 26,
2015 is expected to be paid by the end of 2016.